Circular No. 28/2011/TT-BCT guiding the management of gasoline business in border areas

CIRCULAR

Guidelines for managing petroleum business in border areas

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Pursuant to Decree No. 189/2007/ND-CP dated December 27, 2007, issued by the Government, detailing the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to Decree No. 107/2008/NĐ-CP dated September 22, 2008 of the Government on administrative penalties for speculative hoarding, excessive price increases, spreading false information, smuggling, and commercial fraud;

Pursuant to Decree No. 84/2009/NĐ-CP dated October 15, 2009 of the Government on gasoline and oil business;

Pursuant to Decree No. 140/2004/NĐ-CP dated June 25, 2004 of the Government detailing certain provisions of the National Border Law;

Pursuant to Decree No. 34/2000/NĐ-CP dated August 18, 2000 of the Government on the Regulations on the border area of the Socialist Republic of Vietnam;

Pursuant to Decree No. 161/2003/NĐ-CP dated December 18, 2003 of the Government on the Regulations on the border sea area;

To ensure safety for management and protection of border lines and boundary markers and contribute to preventing smuggling of petroleum across borders, the Ministry of Industry and Trade guides the implementation of Clause 3, Article 5 of Decree No. 84/2009/NĐ-CP dated October 15, 2009 of the Government on petroleum business, as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular provides for the application of certain special management measures in border areas to ensure safety for management and protection of border lines and boundary markers and to contribute to preventing smuggling of petroleum across borders.

Article 2. Applicability

This Circular applies to:

1. Agencies and organizations related to petroleum business management and anti-smuggling activities in border areas.

2. Petroleum traders operating retail petroleum outlets in border areas.

Article 3. Explanation of Terms

1. "Border area" includes the administrative boundaries of communes, wards, and towns where part of their administrative boundaries coincide with the national border on land and communes, wards, and towns adjacent to the sea and islands, archipelagos of Vietnam as prescribed in Decrees No. 140/2004/NĐ-CP dated June 25, 2004 of the Government detailing certain provisions of the National Border Law; No. 34/2000/NĐ-CP dated August 18, 2000 of the Government on the Regulations on the border area of the Socialist Republic of Vietnam; Circular No. 179/2001/TT-BQP dated January 22, 2001 guiding the implementation of Decree No. 34/2000/NĐ-CP dated August 18, 2000 of the Government on the Regulations on the border area of the Socialist Republic of Vietnam; and Decree No. 161/2003/NĐ-CP dated December 18, 2003 of the Government on the Regulations on the border sea area.

2. "Retail petroleum outlet" is a retail outlet selling petroleum for direct consumption that meets the conditions stipulated in Decree No. 84/2009/NĐ-CP dated October 15, 2009 of the Government on petroleum business, and has been issued a Certificate of Eligibility for Petroleum Business in accordance with the law.

Article 4. Organizing Retail Petroleum Outlets in Border Areas

1. The organization of retail petroleum outlets in border areas must comply with regulations ensuring safety for management and protection of border lines and prevention of petroleum smuggling across borders as prescribed in Decree No. 84/2009/NĐ-CP; and must ensure the supply of petroleum to meet the needs of the border area.

2. Retail petroleum outlets constructed illegally and failing to meet the conditions stipulated in Decree No. 84/2009/NĐ-CP and Circular No. 36/2009/TT-BCT dated December 14, 2009 of the Ministry of Industry and Trade promulgating the Regulations on Petroleum Trading Agents must be dismantled, cease petroleum trading operations, and be subject to legal sanctions for violations.

Article 5. Conditions for Applying Special Management Measures

1. The People's Committee of the province or centrally governed city (hereinafter referred to collectively as the Provincial People's Committee) decides to apply certain special measures according to the guidance provided in this Circular in cases where the retail price of gasoline and diesel at border areas within the province is lower than the retail price of gasoline and diesel in adjacent areas of foreign countries by 10% or more, or when there is a situation of smuggling gasoline and diesel across the border.

2. In cases where special measures are applied according to the guidance provided in this Circular, the Provincial People's Committee must issue a Decision on applying certain special measures, specifying the area and duration of application.

Chapter II

SPECIFIC PROVISIONS

Article 6. Time for Selling Gasoline and Diesel

1. The time for selling gasoline and diesel at retail outlets in border areas: from 06:00 to 18:00 daily.

2. In necessary cases and to better meet the demand for gasoline and diesel consumption of border residents, the Provincial People's Committee may adjust the time for selling gasoline and diesel specified in Clause 1 of this Article at each location in accordance with actual conditions.

Article 7. Control of Retail Sales of Gasoline and Diesel

1. In cases where gasoline and diesel are sold to consumers with a total payment value of 200,000 VND or more per transaction, retail outlets in border areas must issue an invoice clearly stating the name and address of the buyer as prescribed in Decree No. 51/2010/NĐ-CP dated May 14, 2010 of the Government on invoices for goods and services.

2. In cases where gasoline and diesel are sold to consumers with a total payment value below 200,000 VND per transaction, retail outlets in border areas are not required to issue an invoice, except when the buyer requests an invoice but must record and track on an inventory sheet.

3. Strictly prohibit the transportation of gasoline and diesel with a total value of 200,000 VND or more without legal invoices or receipts.

Article 8. Retail Quotas for Foreign Vehicles Passing Through

1. Based on geographical conditions, operating areas, and types of vehicles, the Provincial People's Committee stipulates the maximum amount of gasoline and diesel that retail outlets in border areas are permitted to sell to foreign vehicles passing through, including:

a) The maximum amount of gasoline and diesel sold per motor vehicle, including cars; tractors; trailers or semi-trailers pulled by cars or tractors; two-wheeled motorcycles; three-wheeled motorcycles; motorbikes and similar types of vehicles.

b) The maximum amount of gasoline and diesel sold per watercraft, including ships, boats, and other floating structures with engines operating on inland waterways.

2. The maximum amount of gasoline and diesel sold specified in Clause 1 of this Article shall not exceed the quota of 50 liters per transaction per day for each motor vehicle and 100 liters per transaction per day for each watercraft.

3. In cases where geographical conditions require setting a higher sales volume than that specified in Clause 2 of this Article, the Provincial People's Committee may increase the sales volume but not exceeding 20% for specific types of vehicles and must notify the Ministry of Industry and Trade in writing.

4. The provisions of this Article do not apply to cargo ships carrying oversized or overweight loads and international cruise ships.

Article 9. Retail Method for Selling Petroleum Products to Foreign Vessels

1. The provincial People's Committee shall base on the actual situation of the locality to stipulate the retail method for selling petroleum products to foreign vessels that is appropriate and convenient for customers while ensuring the management of the quantity of petroleum products sold as prescribed in Clause 2, Article 8 of this Circular.

2. The sale of petroleum products can only be directly pumped into the main fuel tank of foreign vessels as specified in Clause 1, Article 8; it is not allowed to sell into other containers, including auxiliary fuel tanks attached to the vessel.

3. When selling petroleum products, retail outlets located in border areas must issue invoices clearly stating the license plate number of the vehicle.

Article 10. Supplying Petroleum Products

When supplying petroleum products to retail outlets located in border areas, petroleum traders have the responsibility to:

1. Carry sufficient legal invoices and documents related to the quantity of petroleum products being transported.

2. Adhere to the supply time for petroleum products as prescribed by the provincial People's Committee.

3. Ensure the supply of petroleum products to retail outlets according to the registered quantity and type of petroleum products or in accordance with signed contracts.

Article 11. Reporting on Petroleum Product Business

1. Petroleum traders with retail outlets located in border areas must prepare a list to report to the Department of Industry and Trade about their own retail outlets in border areas that they directly supply petroleum products to, following the model prescribed in Appendix 1 attached to this Circular. In case there is a change in the retail outlet in the border area (ownership form, source of petroleum supply, long-term cessation of business), a supplementary report must be sent to the Department of Industry and Trade within 05 working days from the date of the change.

2. Petroleum traders are responsible for reporting the business situation of each of their retail outlets in border areas to the Department of Industry and Trade of the province or centrally-administered city where the outlet is located, according to periods of 10 days, month, quarter, and year. The report must be submitted no later than 02 days after the end of the reporting period. The report format is prescribed in Appendix 2 of this Circular.

Chapter III

IMPLEMENTATION

Article 12. Responsibilities of Provincial People's Committees with Borders

1. Provincial People's Committees with borders, based on specific circumstances in their locality, decide to implement this Circular; assign specific tasks to each level and sector, closely coordinate to manage the border area, boundary markers, ensure social order, security, border safety, and contribute to combating smuggling. During implementation, they must regularly review the actual situation to make appropriate adjustments.

2. Direct local functional forces to strengthen inspections and controls of retail outlets selling petroleum products in border areas in accordance with relevant laws.

3. Notify the Ministry of Industry and Trade when deciding to apply special measures as prescribed in this Circular.

Article 13. Responsibilities of Provincial Departments of Industry and Trade with Borders

1. Take the lead and coordinate with relevant local agencies to organize the implementation, inspection, and handling of compliance with the provisions of this Circular.

2. Direct market management forces to periodically and randomly inspect the petroleum product business activities of retail outlets in border areas.

3. Direct market management forces to cooperate with border guard forces to inspect the retail sale of petroleum products to foreign vessels.

4. Regularly report monthly to the Ministry of Industry and Trade on the quantity of petroleum products sold by retail outlets in border areas, specifying the reasons for increases or decreases in sales (if any) and proposing remedial measures.

Article 14. Handling Violations

Organizations and individuals violating the provisions of this Circular and related laws will be subject to administrative penalties or criminal liability, depending on the severity of the violation, as prescribed by law.

Article 15. Effective Date

1. This Circular takes effect from September 15, 2011.

2. During the implementation of this Circular, if any difficulties arise, relevant agencies, organizations, units, and traders are requested to promptly reflect them to the Ministry of Industry and Trade for coordinated resolution./.